More consumers are playing Scrooge this holiday season as two thirds of Australians are planning to spend less on gifts, sale shopping and family entertainment, according to a new survey by a finance comparison website.

Mozo surveyed 500 Australians over the last two weeks and found that 43 per cent are planning to spend significantly less this festive season. A further 24 per cent will spend a little less than they had originally planned.

Home borrowers in particular are feeling the crunch of rising interest rates. A whopping 60 per cent of Australians with a mortgage say they will significantly cut back their Christmas spending as a result of the recent rate rise, while a further 27 per cent will cut back a little.

Australians planning a more frugal festive season are most likely to cut spending on Christmas gifts, with six in ten Aussies planning to play scrooge on presents for family and friends. Cutting spending at the end of year sales was next on the list, followed by family entertainment and holidays over the summer break.

The survey also revealed that many financially stretched home borrowers fear they will need to turn to their credit cards to cover the cost of Christmas, despite their plans to reduce spending.

More than a third of home borrowers (37 per cent) surveyed by Mozo said they are now more likely to use their credit cards to cover Christmas expenses than they were before the rate rise.